Edison International: Resilient Regulated Utility at a Deep Discount Amid California Wildfire Tail-Risks
Overview
Edison International, through its principal subsidiary SCE, stands among the top electric utilities in the U.S. Its operations are almost entirely regulated, supplying power to a diversified customer base across Southern, Central, and Coastal California. The company reported $16.3 billion in operating revenue and $1.825 billion in core earnings in 2023, hallmarking the stable cash flows characteristic of regulated utilities. Edison boasts a 21-year consecutive record of dividend growth and is poised to lead California’s clean energy future by investing in essential infrastructure to meet state decarbonization and electrification targets. Its manageable, utility-focused business model, coupled with strong geographic exposure to growth and policy-driven investment, makes it a robust cash generator and dividend payer for investors.